All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad is His slave and Messenger. We ask Allaah to exalt his mention as well as that of his family and all his companions.
Giving a good name to a new born child is recommended in Islam. Giving the names which are mentioned in the following narration is desirable. The Prophet said: "The dearest names to Allaah are 'Abdullaah and Abdur Rahmaan, the truest are Haarith (the cultivator) and Hammaam (always thinking of initiating something)."
Names of the daughters of the Prophet and the names of his wives, mothers of the believers are also among the good names.
It is dislikeable to use names with bad meanings like 'fire' and the similar words, or those which suggest exaltness.
Naming 'Naa'ilah' is allowed, it was the name of the wife of 'Uthmaan ibn 'Affaan . If it was a bad name, he would certainly have changed it to a good one.
We did not find any proof in Islamic history that Naa'ilah was the name of a female magician. But historically it is said to be the name of an idol to which the Quraysh used to offer sacrifices.
Allaah knows best.